In current usage that refers to persons or things, which chiefly to things and rarely to subhuman entities, who chiefly to persons and sometimes to animals. The notion that that should not be used to refer to persons is without foundation; such use is entirely standard. Because that has no genitive form or construction, of which or whose must be substituted for it in contexts that call for the genitive.
Although some handbooks say otherwise, that and which are both regularly used to introduce restrictive clauses in edited prose. Which is also used to introduce nonrestrictive clauses. That was formerly used to introduce nonrestrictive clauses; such use is virtually nonexistent in present-day edited prose, though it may occasionally be found in poetry.